Finished goods inventory on September 30, 2019 was 3,000 units. Projected sales for January are 25,000 units.

Fantastic news! We've Found the answer you've been seeking!

Question:

Finished goods inventory on September 30, 2019 was 3,000 units. Projected sales for January are 25,000 units. The sales price is $100 per unit. The company tries to keep ending finished goods inventory of 10% of the following month's expected sales.

a) Prepare a Sales Budget in units and dollars by month (October, November and December along with the 4th quarter total.

b) Prepare a Purchases Budget in units for each month (October, November and December along with the 4th quarter total.

Related Book For answer-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

See More Books

Posted Date: Mar 11, 2024 10:24 PM

See More Questions

The Thompson Toy Company manufactures toy building block sets for children. Thompson is planning for 2017 by developing a master budget by quarters. Thompsons balance sheet for December 31, 2016,...
The BestCrackers company produces and sells organic garlic crackers. The one- pound family size bag of crackers has two direct materials - flour and packaging. The production process includes making,...
The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $60 each. Grady is planning for the next year by developing a master budget by quarters. Gradys balance sheet for...
Write a Summary of Tartuffe the Norton anthology of western literature.
Researchers wanted to investigate the relationship between employment and accommodation capacity in the European travel and tourism industry. The file EuroTourism contains a sample of 27 European...
Ms. NM, a single taxpayer, projects that she will incur about $8,000 of expenses qualifying as itemized deductions in both 2017 and 2018. Assuming that her standard deduction is $6,350 in both years,...
Estimate the overall odds ratio of the set of tables in Problem3.6 and test whether the odds ratios are the same across the tables. Problem3.6 is: 3.6 Use the DOS data to test whether there is gender...
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2014 and 2013, is: The income statement for the year ended December 31, 2014, is as follows: Additional data obtained from an...
What are NoSQL technologies? Explain with example and reference.
Which one of the following is NOT an example of cash flows in operating activities according to direct method? Select one: a. Cash payment for purchase of inventories b. Cash received from debtors c....
Gabby Company sells a product for $105 per unit. Variable costs are $65 per unit, and fixed costs are $2,200 per month. The company expects to sell 540 units in September. Calculate the contribution...
What are the criteria for preparing an operational budget?
Why can setting standards be difficult?
What does planning mean in the context of budgeting objectives?
What is the final step in the master budget process?
A random process in which both 's' and t' are discrete is called as A. Discrete random process B. Discrete Random sequence C. Continuous Random process D. Continuous Random Sequence
What types of questions can be answered by analyzing financial statements?
Parkview Magazine issued $690,000 of 15-year, 5% callable bonds payable on July 31, 2016, at 95. On July 31, 2019, Parkview called the bonds at 101. Assume annual interest payments. Requirements 1....
Camron Company has divided its business into segments based on sales territories: East Coast, Midland, and West Coast. Following are financial data for 2016: Prepare an income statement for Camron...
Journalize the following labor-related transactions for Portland Glass at its plant in Portland, Oregon. Assume that the labor has been incurred, but not yet paid. Plant janitors wages...... $ 650...
We are a global, science-led biopharmaceutical business. Return to shareholders Revenue from the sale of our medicines generates cash flow, which helps us fund business investment. It also enables us...
Our mission and supporting strategies The FRCs mission is to promote high quality corporate governance and reporting to foster investment. Why have we landed on this mission? The capital markets are...
National Express and Stagecoach are both major providers of transport services in the UK. Here we compare their accounts of financial performance in their UK Bus divisions. National Express plc UK...

Finished goods inventory on September 30, 2019 was 3,000 units. Projected sales for January are 25,000 units.

Question:

Expert Answer:

To prepare the sales and purchases budgets well follow the given information and calculations Given ... View the full answer

Horngrens Financial and Managerial Accounting

Students also viewed these accounting questions